Below is an alphabetical listing of the accounts in the general ledger of Clay and Ogletree, LLP,

Question:

Below is an alphabetical listing of the accounts in the general ledger of Clay and Ogletree, LLP, at the partnership?s fiscal year end, September 30, 2021. Adjusting entries for the year have been posted and included in these balances.

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Additional information:

1. The balance in Clay?s capital account includes an additional investment of $10,000 made during the year.

2. $5,000 of the note payable is due within the next year.

3. Clay and Ogletree share profi t and loss in the ratio of 3:2, respectively.

Instructions

a. Prepare an income statement, statement of partners? equity, and balance sheet.

b. Journalize the closing entries.

Taking It Further

Should the two partners draw equal amounts each year? Both of them work full-time for the partnership.

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Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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